Global commercial insurance rates fall for third consecutive quarter – Marsh

Global commercial insurance rates fell 3% in the first quarter of 2025, marking a third consecutive quarter of rate decreases.

This is according to the latest Global Insurance Market Index report, published today (24 April 2025) by broker Marsh. Last quarter, the research reported a 2% decline in global commercial cover rates.

The successive rate decreases recorded in Marsh’s newest report edition marked a change in global trends, following seven years of rising rates.

Marsh suggested that the falls in commercial rates were being “driven by heightened competition in the global insurance market due to increased capacity from existing providers and some new entrants”.

Global falls

Year-on-year commercial rate falls were seen in every global region in Q1, with the Pacific seeing an 8% fall in commercial lines rates, the UK experiencing a 6% drop, India, Middle East and Africa (IMEA) noting a 4% dive, Asia and Canada recording a 3% decrease, Latin America and the Caribbean (LAC) having a 2% dip and the US and Europe seeing a 1% fall.

Property, financial and professional and cyber lines all saw pronounced rate decreases, which Marsh said was due to insurers “actively seeking new business opportunities and expanding their offerings”.

Casualty rates bucked the trend, however, increasing by 4% globally in Q1. This was largely due to an 8% rise in rates for this line of business in the US, driven by high frequency and severity of casualty claims.

John Donnelly, president of global placement at Marsh, said: “Driven by increased insurer competition and favourable reinsurance pricing, global commercial insurance trends continued to improve for our clients, on average, in the first quarter of 2025, with the exception of US casualty.

“We expect the overall trend to continue and for insurer competition to intensify, barring unforeseen changes in conditions.

”We are committed to helping clients manage costs, protect their balance sheets and successfully navigate and benefit from the continued improvement in market conditions.”